How are HTGC butterfly max profit and max loss calculated?

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the HTGC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $82.50 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HTGC butterfly?

The breakeven for the HTGC butterfly priced on this page is roughly $15.18 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current HTGC market-implied 1-standard-deviation expected move is approximately 6.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HTGC implied volatility affect this butterfly?

HTGC ATM IV is at 23.10% with IV rank near 5.03%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

HTGC Butterfly Strategy

HTGC (Hercules Capital, Inc.), in the Financial Services sector, (Asset Management industry), listed on NYSE.

Hercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, emerging growth, mid venture, and late venture financing.

HTGC (Hercules Capital, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.97B, a trailing P/E of 8.73, a beta of 0.77 versus the broader market, a 52-week range of 13.7-19.67, average daily share volume of 2.7M, a public-listing history dating back to 2005, approximately 100 full-time employees. These structural characteristics shape how HTGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.77 places HTGC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.73 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HTGC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a butterfly on HTGC?

A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.

Current HTGC snapshot

As of May 15, 2026, spot at $15.51, ATM IV 23.10%, IV rank 5.03%, expected move 6.62%. The butterfly on HTGC below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 154-day expiry.

Why this butterfly structure on HTGC specifically: HTGC IV at 23.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a HTGC butterfly, with a market-implied 1-standard-deviation move of approximately 6.62% (roughly $1.03 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HTGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HTGC should anchor to the underlying notional of $15.51 per share and to the trader's directional view on HTGC stock.

HTGC butterfly setup

The HTGC butterfly below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HTGC near $15.51, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HTGC chain at a 154-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 HTGC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$15.00	$1.00
Sell 2	Call	$16.00	$0.83
Buy 1	Call	$16.00	$0.83

HTGC butterfly risk and reward

Net Premium / Debit: -$17.50
Max Profit (per contract): $82.50
Max Loss (per contract): -$17.50
Breakeven(s): $15.18
Risk / Reward Ratio: 4.714

Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.

HTGC butterfly payoff curve

Modeled P&L at expiration across a range of underlying prices for the butterfly on HTGC. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$17.50
$3.44	-77.8%	-$17.50
$6.87	-55.7%	-$17.50
$10.29	-33.6%	-$17.50
$13.72	-11.5%	-$17.50
$17.15	+10.6%	+$82.50
$20.58	+32.7%	+$82.50
$24.01	+54.8%	+$82.50
$27.44	+76.9%	+$82.50
$30.86	+99.0%	+$82.50

When traders use butterfly on HTGC

Butterflies on HTGC are pinning bets - traders use them when they expect HTGC to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.

HTGC thesis for this butterfly

The market-implied 1-standard-deviation range for HTGC extends from approximately $14.48 on the downside to $16.54 on the upside. A HTGC long call butterfly is a pinning play: it pays maximum at the middle strike if HTGC settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current HTGC IV rank near 5.03% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on HTGC at 23.10%. As a Financial Services name, HTGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HTGC-specific events.

HTGC butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. HTGC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HTGC alongside the broader basket even when HTGC-specific fundamentals are unchanged. Always rebuild the position from current HTGC chain quotes before placing a trade.

Frequently asked questions

What is a butterfly on HTGC?: A butterfly on HTGC is the butterfly strategy applied to HTGC (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With HTGC stock trading near $15.51, the strikes shown on this page are snapped to the nearest listed HTGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HTGC butterfly max profit and max loss calculated?: Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the HTGC butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.10%), the computed maximum profit is $82.50 per contract and the computed maximum loss is -$17.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HTGC butterfly?: The breakeven for the HTGC butterfly priced on this page is roughly $15.18 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current HTGC market-implied 1-standard-deviation expected move is approximately 6.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a butterfly on HTGC?: Butterflies on HTGC are pinning bets - traders use them when they expect HTGC to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
How does current HTGC implied volatility affect this butterfly?: HTGC ATM IV is at 23.10% with IV rank near 5.03%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.